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Tomorrow's Monster Stocks

Famed money manager Peter Lynch called them "10-baggers" -- stocks that climbed to 10 times the value he paid for them. They're a rare breed, but they're not impossible to find. Especially when you've got Fools for friends.

If you look back over the market's best stocks, you'll find companies that have risen in value over the past decade by 3,000%, 5,000%, and even 24,000%. They're not penny stocks, but viable companies with sound business prospects -- companies that are achieving phenomenal returns every year. You need to pick only one or two monster stocks to have a winning portfolio.

Stalking the monsterSo where can we find tomorrow's monster stocks today? At Motley Fool CAPS, we track the opinions of more than 72,000 investors who are working every day to help collectively identify those winners. Thousands of stocks are rated by both novice and professional analysts. The opinions of the best stock pickers are weighted more heavily in determining a stock's CAPS rating of one to the maximum five stars.

Investors at CAPS are rated as well, and we call the best of them All-Stars. We've compiled a list of these top players, who, like Peter Lynch, have already found monster stocks -- companies that have doubled, tripled, or quadrupled in price. Then we've given you some of their recent picks for stocks they consider equally promising.

Player

CAPS Rating

Monster Stock

CAPS Score

Recent Stock Pick

CAPS Rating

tucsoncyclist

96.68

Diana Shipping(NYSE:DSX)

231.12

Frontline (NYSE:FRO)

****

dmitchell05

96.06

First Solar (NASDAQ:FSLR)

421.57

Harvest Energy Trust(NYSE:HTE)

*****

Ferrari0550

94.98

TBS International(NASDAQ:TBSI)

411.06

Textron (NYSE:TXT)

****

Of course, this isn't a list of stocks to buy, or -- for those monster stocks that the CAPS All-Stars have already found -- sell. Rather, it's a jumping-off point for doing additional research.

The future's so brightShipping has been an industry where a lot of top CAPS players have earned their rankings. We've seen another shipping giant, DryShips (NASDAQ:DRYS), earn some monster returns for investors over the past year. This week, CAPS player tucsoncyclist is trying to build on his success with Diana Shipping by parlaying Frontline into another growth stock.

Frontline has paid out some fairly large, consistent dividends. Just last month, the company paid out yet another extraordinary dividend over and above its regular payout, thanks to selling its interest in Dockwise.

Top-rated CAPS All-Star UncommonSense, with a 99.01 player rating, noted earlier this summer that with oil prices near record highs and the potential for more oil to continue flowing out of OPEC countries, Frontline could capitalize on the market's nuances.

Frontline has the largest fleet of tankers in the world and that is a very good thing for several reasons. Firstly, rates will stay steady or rise because global oil production must rise to meet current demand. With oil prices near record highs, OPEC will likely increase production -- thereby increasing tanker rates as well. Frontline, which rarely charters its vessels on long term contracts, is in a prime spot to capitalize off of rising rates. Look for increasing dividend yields along with strong relative strength in its stock price.

Dividends, dividends, dividends -- those were the three reasons why I picked Frontline. Open the 5-year chart and show dividends: it's like watching fireworks at Disney!

A chance for scary growthNow's the opportunity for you to weigh in on Frontline or any of the other stocks these All-Stars see as achieving monster growth. Agree with their views? Tell us on CAPS. If you don't agree, let us know that, too! Let's hear if you think these are tomorrow's monster stocks that have been uncovered today.

Author

Rich has been a Fool since 1998 and writing for the site since 2004. After 20 years of patrolling the mean streets of suburbia, he hung up his badge and gun to take up a pen full time.

Having made the streets safe for Truth, Justice and Krispy Kreme donuts, he now patrols the markets looking for companies he can lock up as long-term holdings in a portfolio. So follow me on Facebook and Twitter for the most important industry news in retail and consumer products and other great stories.